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I am at a trading crossroads; Technical indicators I am considering removing them I utilize
RSI 2
50 EMA
100 EMA
150 EMA
I am profitable however I do not think the indicators is what leads to profitability more so to hesitation. I use price action as well as the VIX and TICK index to offer market insights and and convergence or divergence signals.
Any insight from fellow traders would be greatly appreciated
If you are profitable then stick to your game plan as it is working for you I don't exactly know which time frame or bars type
you are using but for price action traders the trading chart with renko bars type like unirenko works very well to mange risk.
For example if you are trading 15 Minute charts and you are making your exit decison on bar close you can't consistantly manage
your risk as volatility for (Time base candles)15 Min candle varies time to time, session to session.I have seen one 15 Min Candle of 1800 ticks on YM (US30 CFD), 2700 Ticks On NQ(NAS100 CFD) during COVID-19 on Vaccine News even in pre-market. But if we are using price based candles like say Renko or Uni-Renko of let us say 32 tick size you will be able to make your decision after 30 ticks price movement
as this bar will close at 30 ticks.
Whatever time frame or bars type you use keep using to see the bigger picture of markets but only trading charts where we execute the trades if they are priced based like renko or range charts they work very Well.
If you want to use any indicator any swing type indicator that measures market swings in ticks and also projects some size of swing in future and also trails the past swings will be very good to understand the price action in few seconds.
You are already using Vix Which actually in my view is a swing indicator that is calculated using the prices of options contracts on the S&P 500 Index and measures the Volatility range over a specific period of time.It gives you bigger picture but it is not necessarily a direct indicator of market direction.
While price action Swing indicators are good in a sense that they offer you opportunity to have a quick look at market context and current
market trend direction of smaller moves as well.
Price action Swing indicators are kind of complimentary tools to TICK and TRIN bias .As these indexes give you direction bias Price actions swing indicators measure market movements for you tick by tick there by offering you precise entry and exit reference points.
This is not a criticism, just an observation. Feel perfectly free to ignore if you wish.
I have tried to read your usually long posts, but have often just given up. Why? because they are massive blocks of text without break or anything to separate the thoughts being expressed.
Taking your above post, this is how it looks if all one does is hit the Enter key after every major point, which adds a blank line after it:
I just hit the Enter key semi-arbitrarily where it looks like you already have paragraph breaks. It's the same words, the same thoughts, but it may be more readable.
It's up to you what you do, but as a reader I would be more inclined to read this because it's no longer the same massive wall of text. Sometimes small things make a difference.
Feel free to conclude that I don't know what I'm talking about, and you certainly don't have to follow this suggestion. But I've just given up in several of your posts -- there's no point in making it harder for the reader. You might try this, if you think it could be beneficial.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
Many use a 20 N EMA. PATS ,Com uses a 21N EMA on a 2,000 tick ES. I personally like something that draws a band around normal price action. Fat Tails offers a Fibonacci lines indicator that I use a small part of. I use the inner band only which is 1.616 times a chosen ATR added and subtracted from what ever center moving average you are using, which for me is the 21N EMA.
From The Strat threads on this forum I use BOTS (RIP) colored outside and inside bars and his coding of the Klinger volume oscillator. I use white for the Klinger and red/green for the signal line. I had been watching a 7n EMA of On Balance Volume along with Cumulative Delta but I think the Klinger works better. It is, by the way, pretty similar to the True Strength Indicator.
We spend a good part of the year living in a giant beer can (Airstream). Several years ago when someone posted the code for Solarized colors I started using those. Trying to read a screen when you are sitting in side a half circle of glass can be an issue!
I am very aware that a lot of Price Action traders (the high priests of the naked chart) do not want any lines. Well I do think opening range and prior days high low close are helpful. The other lines I like are actually bands showing higher probability areas of a change in direction or pace. They come with a membership in Convergent Trading. They are updated daily well before the open and automatically download.
I am trying out a new to me idea of running a plot of 1 period ATR with a 7nEMA ATR. I have that in the same box as the Klinger but left aligned and all in black. Combined with non-equal bar spacing on my tick chart it does give you a better feel for the flow of the market. It also really shows the weakness of an ATR based stop as the dispersion around a given EMA is not Gaussian, yet another example of fat tails.
For the bigger picture I also run a 10,000 tick chart with volume profile.
I have attached Fridays opening hour or so to give you a much better idea of what I am saying.
I tend to the no indicators school but recommend a different strategy. Find out what works for you.
I suggest removing them one at a time to see what impact it has. Try the middle ma first. Then perhaps the longest. Take them off from the one you expect to have the least impact.
At the moment I have a trailing 7 period H&L on one of my charts (but only displayed when its getting closer, or holding). Its been there a few days, and it's a little like looking at a 6x higher TF chart and I'm not sure if it will survive. Its quite pretty so maybe.
this game is not about what indicators to use but how you will react after opening a position
ma rsi macd stoch adx and all other retail techniques .... are all garbage for me
try to take the direction to the volume town : buy sell volume, delta, volume profile,DOM(depth of market) , footprints that's all what a pro trader need
I do not use any technical indicators. They only tell you what the market did not what is is about to do. EMA are good, Consider adding the 8 ema for short term direction. Note that the slope of the emas is critical and useful. Good luck.
